BBVA Compass takes $60m write-down on Simple

BBVA Compass takes $60m write-down on Simple

BBVA Compass took a $60 million goodwill impairment charge on its Simple digital banking unit in the fourth quarter.

BBVA raised eyebrows when it paid $117 million for Simple three years ago when the original neobank still had just 100,000 customers.

As picked up by the Portland Business Journal, the latest charge means that BBVA Compass has now taken a total writedown on the asset of $89.5 million.

Simple CEO Josh Reich tells the Business Journal that BBVA "continues to be a net investor" and his firm now has around 350 staffers, with more coming in this year.

BBVA CEO Carlos Torres Vila is also remaining upbeat, insisting that Simple "is growing very well," signing up more than 30,000 customers a month at a low cost of acquisition.

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